Govt happy with arrears clearance progress

The Zimbabwean Government has expressed optimism over the progress and milestones achieved in reforms under the arrears clearance and debt resolution process. During a meeting with Sector Working Groups (SWGs) on Monday, the Government emphasized the importance of continued dialogue to meet the objectives of the reforms.

The reforms are centered around three strategic pillars: economic growth and stability, governance and land tenure, and the compensation of former farm owners (FFOs) and the resolution of Bilateral Investment Protection and Promotion Agreements (BIPPAs).

In a statement, the Government encouraged all stakeholders to maintain ongoing discussions and accelerate efforts toward achieving the targets outlined in the SWG's matrices, which will be key to the success of the debt resolution process.

Efforts to make the 99-year land lease bankable and tradable have gained momentum, with stakeholders recently undertaking a study visit to Tanzania to learn from its experiences.

On compensation for former farm owners, Mrs. Anna Tinarwo, Chief Director in the Office of the President and Cabinet, said 444 farms have been cleared for payment. The Government has allocated US$35 million in the 2024 Budget to compensate FFOs under the Global Compensation Deed, signed in 2020. Meanwhile, US$20 million has been set aside to compensate BIPPA farmers, with 92 farms approved for payment.

Tinashe Masiiwa of the Bankers Association of Zimbabwe highlighted that the country was making progress regarding the bankability of the 99-year lease, adding that enacting confidence-inspiring policies would benefit the private sector.

As of June 2024, Zimbabwe's public debt stood at US$21 billion, with external debt at US$12.3 billion and domestic debt at US$8.7 billion. The Government reiterated its commitment to reforms aimed at resolving the debt challenge. Zimbabwe's Public Debt Management Office head, Andrew Bvumbe, stressed that this process is critical to addressing the country's long-standing debt burden.

The Government has appointed financial and legal advisors—Global Sovereign Advisory and Kelper-Karst Law firm—to assist with the process, supported by the African Legal Support Facility.

Development partners, including representatives from the European Union, Switzerland, and the United Nations Development Programme, acknowledged the progress and offered their continued support for the debt resolution process.

The ongoing reform efforts are part of the Government's engagement and re-engagement agenda, led by the African Development Bank President Dr. Akinwumi Adesina and facilitated by former Mozambican President Joachim Chissano. The Structured Dialogue Platform established in December 2022 institutionalizes this dialogue, with the goal of guiding Zimbabwe through economic and governance reforms essential for its debt resolution process.